1. The University Credit Union has engaged your services to determine the cost o
ID: 2584232 • Letter: 1
Question
1. The University Credit Union has engaged your services to determine the cost of its various activities. The following data are available for a representative branch.
Process deposits
Process checks
Balance inquiries
Other activities
Total cost
Tellers
30%
40%
10%
20%
$150,000
Asst Mgr
10%
10%
5%
75%
75,000
Manager
2%
3%
5%
90%
90,000
The average branch processes 600,000 deposits and 1,250,000 check transactions each year.
1-1. Compute cost per deposit
1-2. Compute cost to process a check
Process deposits
Process checks
Balance inquiries
Other activities
Total cost
Tellers
30%
40%
10%
20%
$150,000
Asst Mgr
10%
10%
5%
75%
75,000
Manager
2%
3%
5%
90%
90,000
Explanation / Answer
*30%×$150,000. Similar computation apply for other cells.
1-1
Cost per deposit:$54,300/600,000 deposits=$0.0905 per deposit
1-2
Cost per check:$70,200/1,250,000 checks=$0.05616 per check
Process deposits process checks balance enquiry other activities total costs Tellers $45,000* $60,000 $15,000 $30,000 $150,000 Assistant manager $7,500 $7,500 $3,750 $56,250 $75,000 Managers $1,800 $2,700 $4,500 $81,000 $90,000 Total $54,300 $70,200 $23,250 $167,250 $315,000Related Questions
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